Yen Slides to 160 as Dollar Holds, Euro and Pound Ease

The Japanese yen slipped to the 160‑per‑dollar mark on Wednesday, as renewed tensions in the Gulf pushed investors toward the U.S. dollar. The dollar finished the session at 159.98 yen, a 0.04% rise.

U.S. Central Command confirmed that Iran had fired ballistic missiles at regional neighbours, though none hit their targets. In response, U.S. forces struck Qeshm Island, a move that has kept market sentiment cautious and the dollar in the spotlight.

Japan’s earlier 11.7 trillion‑yen ($73.14 billion) intervention last month had nudged the currency higher, but the 160 threshold—where authorities have previously stepped in—has been breached again. SMBC’s chief FX strategist Hirofumi Suzuki said the 160‑161 area is likely being watched closely, noting that rising crude prices are adding to yen‑selling pressure.

Finance Minister Satsuki Katayama confirmed that the authorities are prepared to act if necessary.

In broader currency trading, the euro fell 0.09% to $1.1621 and sterling slipped 0.07% to $1.3455. Euro‑zone inflation accelerated last month, driven by energy and services, reinforcing the case for an ECB rate hike later this month.

The dollar remained steady against a basket of currencies at 99.28, up slightly overnight. U.S. job‑opening data showed a five‑year high in April, though analysts caution that the figure may overstate the labor market’s strength. A Commonwealth Bank of Australia strategist projected that the Federal Reserve could start a tightening cycle in December 2026, with markets pricing in about 18 basis points of rate hikes by that time.

The Australian dollar fell 0.05% to $0.7177, and the New Zealand dollar dipped 0.03% to $0.5924. Bitcoin dropped 0.75% to $66,985.26, hitting a two‑month low, while ether slid to a three‑month low at $1,200.06.